Morgan Stanley (NYSE:MS) is a leading global financial services firm providing investment banking, securities, wealth management, and investment management services. The company competes with other major financial institutions like Goldman Sachs and JPMorgan Chase. On January 15, 2026, Morgan Stanley reported earnings per share (EPS) of $2.68, surpassing the estimated $2.43, and revenue of $17.89 billion, exceeding the estimated $17.74 billion.
The company's strong performance in Q4 2025 was highlighted during its earnings call, as reported by Seeking Alpha. Morgan Stanley's EPS of $2.68 marked a significant 21% increase, driven by a 47% surge in investment banking fees. This growth was fueled by robust merger and acquisition (M&A) activity and a strong market for initial public offerings (IPOs). The advisory fees saw a 45% year-over-year increase, thanks to a rise in completed M&A transactions.
Morgan Stanley's fixed income underwriting fees jumped by 93%, supported by higher issuances, while equity underwriting income grew by 9% due to increased activity in convertibles and IPOs. The Wealth Management division also performed well, with revenue climbing 13% as client assets reached $7.38 trillion, marking a 19% increase from the previous year. This success set Morgan Stanley apart from many of its Wall Street counterparts.
Following the announcement of its impressive fourth-quarter earnings, Morgan Stanley's share price increased by 4%. The bank reported net revenues of $17.89 billion, reflecting a 10.3% year-over-year growth, primarily driven by its strong performance in wealth management. The adjusted EPS was $2.68, surpassing the analyst estimate of $2.45, and showing an increase from $2.22 in the same quarter the previous year.
For the full year, Morgan Stanley achieved net revenues of $70.6 billion and an EPS of $10.21, up from $61.8 billion and $7.95, respectively, from the prior year. The company's success was attributed to multi-year investments that have bolstered growth and momentum across the Integrated Firm. Despite a negative enterprise value to operating cash flow ratio of -175.28, Morgan Stanley's debt-to-equity ratio of 3.77 and current ratio of 0.26 highlight its financial structure and liquidity challenges.
